CEBU, Philippines – The aggressive demand for consumer loans specifically in the Visayas and Mindanao market prompted Security Bank Corporation (SECB) to target higher growth performance with Security Bank president and chief executive officer (CEO) Alberto S. Villarosa, he said that the bank can easily achieve the 25 percent growth target for 2009 for its entire operations in Visayas and Mindanao, as the market shows increasing interest in availing consumer loan products, like car and housing loans.
Likewise, he said the bank has also seen an improvement of loans from the corporate market, from large corporations down to the SMEs (Small and Medium Entreprises).
He said this positive development that emerged against the backdrop of global meltdown, will push a good double digit growth for the company in 2009.
Villarosa also noted a positive development in the “savings culture” of Filipinos, saying that the bank has also welcomed the development of the capital market, which had been growing significantly in the last couple of years.
Security Bank, a publicly listed company, posted a 10 percent slowdown of its net income performance in the first quarter of 2009 to P750 million.
This level is better than the bank’s targets for the period and on track towards achieving its expected full year performance goals, said Villarosa
However, the bank was able to offset this performance, with a high 23 percent Return on Equity (ROE) versus the 19 percent ROE for the full year 2008, thus maintaining its track record for superior returns for its shareholders.
“We are very pleased with our first quarter business and financial results, specifically the significant and steady growth in our core businesses even as we prudently risk manage the earnings stream from our volatile trading activities, “he said
Villarosa said the bank’s core business continue to provide its solid foundation and fundamentally sound balance sheet and capital base with which to pursue the opportunities for the remainder of the year.
“While we recognize that the dislocation brought about the current global financial crisis has yet to fully stabilize, we continue to maintain an outlook of guarded optimism for the country and for Security Bank in particular,” he added.
The bank’s core businesses as reflected in the vibrant 38 percent growth of its loan portfolio to P67 billion and the 28 percent increase in its deposit base to P108 billion over the first quarter last year.
More significantly, the growth was accompanied by a 24 percent year-on-year increase in net interest income to P1.4 billion for the quarter.
In the last seven years, the bank poured its highest capital expenditure (capex) in spending about half-a-billion pesos for branch expansion and technology upgrade.
Villarosa said the bank is cautiously optimistic of the Philippine economic prospects, and there‘s no way to go, but to push on aggressive moves, saying “our biggest enemy is complacency.”
The bank’s P500 million capital expenditure for 2009, will be spent mostly in technology advancement of the banks growing 119 branches across the country, giving the optimum customer-service advantage to its clients.
In Cebu, the bank, already spent at least P30 million investments for the opening of three bank outlets, located in Banilad, North Road, and Tipolo in Mandaue City, making a total of five branches in Metro Cebu.
Source: The Freeman Cebu
